To stay or go: PM will tell us soon

The Prime Minister, John Howard, is close to deciding whether to commit himself to seeking another term in office and is likely to tell Parliament his plans next month.

Opinion in the Liberal Party is overwhelmingly in favour of him deciding to stay in politics, although one senior figure who has close connections with Mr Howard said he expected him to announce his intention to retire.

Mr Howard yesterday gave his strongest indication so far that he was almost ready to clear up the uncertainty over his plans, saying he would announce his intentions "in the not too distant future".

Speaking on radio station 2GB Mr Howard said he was "not quite ready to say it at the moment". But he added: "I'll be saying something about my medium- and longer-term future in the not too distant future."

He is committed to announcing by his 64th birthday in July whether he will stay in politics. He said at the start of the war in Iraq that he would see the war through before deciding his future.");document.write("

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With the war now effectively over and with speculation likely to intensify when Parliament resumes for the federal Budget sittings on May13, sources said Mr Howard wanted to clear the air before the July deadline. Any statement to Parliament is likely towards the end of May.

Mr Howard is under pressure to stay and lead the Coalition to the next election. With his approval among voters increasing sharply since the Iraq war started and with the Government in a strong political position, there is deep opposition in the Liberal Party to the idea that he might quit.

The Prime Minister has been canvassing the views of trusted associates who are offering conflicting advice. Some believe he should capitalise on his support and the Government's strong advantage and commit to staying for another full term. Others say he has earned the right to retire while the Government's political position is so strong and hand his successor - certain to be Peter Costello - a strong base from which to launch his prime ministership.

Adding to speculation that he intends to stay on, Liberal sources said Mr Howard had recently launched a fund-raising drive in his Sydney electorate of Bennelong. This was said to be the first time in years Mr Howard had personally become involved in raising election campaign funds for the local electorate.

The Foreign Minister, Alexander Downer, said yesterday that Australians would understand if Mr Howard wanted to continue. He said he expected an announcement on or before his July deadline.

"Most people in Australia are very satisfied with him as Prime Minister but if he wishes to retire, people will understand that. And if he wishes to go on, they'll understand that as well," he said. "We'll just have to wait and see."